As someone with some martial arts training, and fan of the arts, I also like VF. Though I do not think being a Sega property did anything to kill it. VF5 was on PS3, xbox 360, and arcade. The last 3 SC games haven't had an arcade release in comparison. VF5 had more updates than the last 3 SC games. Still people didn't flock to VF5. It's got no hook for casuals.
Did you know they wanted the game to be called VirtuaL Fighter, but couldn't use it because Virtual was trademarked?
well I do think VF5 Final Showdown was a bit of a botched release. VF5 FS does feel like the "friendliest" game in the series to newcomers imo.